If You Are Considering Filing: Beware of Bankruptcy Mills

With the recent increase of bankruptcy filings, California bankruptcy attorneys are looking for more opportunities to increase their market share. While some are still doing business the old fashioned way (meeting with every client filing personal bankruptcy), others are operating bankruptcy mills and filers might get the short end of the stick. Millions will consider filing bankruptcy over the next few years to get some form of debt relief, stop a foreclosure, wage garnishment or avoid a reposition of a vehicle. We think it’s important to meet your attorney in person for a chapter 13 or chapter 11, and at least speak to him or her over the phone if you are filing chapter 7. Yes, the actual bankruptcy attorney that’s going to file your bankruptcy petition and represent you at your 341 meeting (creditors meeting).

Orange County, California is a hotbed for debt settlement and debt relief agencies and with mill type operations. California bankruptcy attorney James D. Zhou says “We have heard horror stories from clients with improperly filed bankruptcies from theses chapter 7 mills”. Zhou is senior partner at the Law offices of Zhou & Chini and has been practicing bankruptcy law for over 10 years. Our name is on the door, and I won’t tolerate creditors abusing our clients, let alone another firm. The truth is we are seeing attorneys with no bankruptcy filing experience lending their name to Bankruptcy Law Firms when they have no knowledge of Federal bankruptcy laws or California state exemptions.

With so many cases being dismissed by the bankruptcy courts, trustees at these courthouses are starting to really interrogate filer’s. Asking questions like; who did you meet with at the law firm? Was your attorney present? And, how much did your bankruptcy attorney charge you to file your bankruptcy?  Bankruptcy filings have increased approximately 50% month to month throughout California, and in some counties filing are up over 75%. In counties like Riverside, San Diego, San Bernardino and Orange County, bankruptcy attorneys are really marketing up a storm. You can find them in the Penny saver, Yellow Pages, Newspaper, and on the Radio, TV and the Internet. If you need to file bankruptcy you should consider a few things prior to paying a bankruptcy attorney to help you file chapter 7 or chapter 13 bankruptcy.

• If you call and can’t speak directly to the attorney over the phone look elsewhere for help.
• If your attorney won’t discuss their fees with you over the phone find an attorney that will.
• If your attorney won’t offer to run a “means test” for free then find another attorney.
• Your attorney should be willing accept a small initial deposit to stop creditor harassment.
• Attorneys should offer you a free initial consultation to discuss all your debt relief options.
• Your attorney should advise you of options available to you other than filing bankruptcy.

If you stick with a plan and speak directly to the actual bankruptcy attorney that will file your case and represent you at your creditors meeting you will avoid these chapter 7 bankruptcy mills. This information has been provided by the bankruptcy attorneys at the Law Offices of Zhou & Chini. If you are considering filing bankruptcy chapter 7, chapter 13 or chapter 11, attorneys James D. Zhou and Ron Chini speak personally with every client and always offer a free and confidential consultation. As Mr. Zhou says “It’s our name on the door, and we take pride in our work”.